Page 8 - Logistics News - Issue 02 - 2024

L O GI S T I CS C O S T S

Navigating the maze

of logistics costs

By Carsten Schubert, Director: Sales & Operations at Transnova

Navigating the maze of transport costs in South Africa is a challenge facing
both manufacturers and their distribution partners and requires a nuanced
understanding of the challenges faced by both parties.

n the ever-changing world of logistics in southern Africa, A quest for value in a costly maze

transportation costs play a significant role and remain South African companies across all industries are
I a constant source of pressure for both companies that always on the lookout for efficient transportation
manufacture goods and transport companies that distribute solutions, but it is a constant struggle. Inflation has a
these goods to the market. These costs impact supply chains, significant impact, fuel prices are continuously on the

affect profit margins and ultimately influence the competitiveness rise and the ongoing challenges of crime and a lack of
of the entire economy. It’s essential for any business that wants to investment in key infrastructure put immense pressure
succeed in this environment to understand how transport costs on manufacturers to get the most value out of every
are determined and how to navigate their complexities. rand spent on transportation.

The Road Freight Association Vehicle Cost Index – All Concepts. https://rfa.co.za/SA/vehicle-cost-index-_-all-concepts/
(5 February 2023).

6 NO V E MB E R/D E C E MB E R 2024 www .l o g ist i csn e w s .c o .z a